Mind the pension gap

Providing for my retirement years.

Current research shows that as a nation we are not investing enough in our pensions to adequately provide for our retirement.

With so much demands on our income, it is easy to put our future needs to one side and intend to sort it out later.

Well the time is now.

What steps should I take to help provide a pension for my retirement years?

First you should investigate all available ways of providing a secure income for your retirement years.                                                                                                                              

The main contenders are, personal pensions, executive pensions, PRSAs, AVCs, occupational pension schemes. These products do not suit everyone and you need to choose the one which is best for you.

To get a clear understanding of which option would suit your individual circumstances talk to one of our experienced and qualified advisors.

I have a pension, how can I check if I am saving enough for my retirement?

You can use our pension savings health check worksheet to see if you are on target.

Download our pension savings health check worksheet here>>

Or,

You can use our mind the gap calculator, provided by Aviva, below, remember to click back to this page when you have completed the calculations. {KomentoDisable}

 , For our mind the gap pension calculator Click here>>

What can I do to fix the gap in my pension funding?

If after taking the gap test, you find that there is a shortfall in savings for your future, don't worry, all is not lost.

The big plus is that you are aware of it now, and can take positive steps to fix it, before it is too late.

For more information read more>>

 Photo Andrew Gustar Some rights reserved                         

Occupational Pension Plan.

This is a plan set by an employer to provide pension and other benefits for an employee.

The employer must make a contribution to this type of plan.

It is an excellent way for employers to reward loyal and hard working staff.

It is a tax efficient way to transfer funds to the employee, ultimately by way of pension.

It can be tailored to provide cost effective life assurance and disability benefits to the employee.

What's the difference between defined benefits and defined contribution schemes ?

A defined benefits scheme has a method for calculating the pension to which you will be entitled on retirement.

It usually refers to your earnings and length of service.

By applying the formula set out under the scheme you can calculate the benefits which will accrue to you under the scheme.

Many schemes have not provided sufficient funds for anticipated pension requirements and will have to make serious adjustments or risk the fund becoming insolvent.

With such fluctuations in the economy, they are not a popular product.

A defined contribution scheme focuses on the contributions to be made to the scheme.

These are easier to predict and control.

They are a more popular scheme.

Employer and employee agree at the start, on the amount of contribution each should make.

The ultimate pension payable is dependent on the value of the fund at retirement.

What happens to my occupational pension if I change jobs?

You can do one of the following:

• Leave the money in the pension plan and have it treated as paid up.

• Get a refund of your own contribution to the plan. You loose out on your employer's contribution and they are taxable. This is available if you have less than two years pensionable service.

• Transfer the value of the pension into another pension scheme. This could be your new employers occupational pension scheme, a PRSA or a retirement bond

These options are affected by length of pensionable service.

What should I do now?

We recommend that you obtain independent advice prior to taking any action that would affect your pension.

We can prepare for you a customised plan suited to your individual circumstances.

In pension planning no two circumstances are identical.

That is why you should contact us today.

Use the quotation button

Or telephone us on 1890 666 666. {KomentoDisable}

Occupational pension schemes

The law does not force employers in Ireland to provide occupational pension schemes for their employees. Many employers are choosing to do so.

All about that occupational pension scheme

An occupational pension scheme is organised by the employer to provide pensions to one or more employees on retirement.

On the death of the employee

the benefit of the pension passes to surviving dependants.

The pension scheme may be any of the following:

• Funded or unfunded

• contributory or non-contributory

• defined benefit or defined contribution

What is a Self-Administered Pension Scheme?

A self administered pension scheme puts you in control. These schemes have become the investment vehicle of choice among employers. They can only be set up by an employer. They can be established for salaried directors and/ or salaried employees. For more click here>>

The difference between an occupational pension and a personal pension

As we say earlier, an occupational pension scheme is organised by the employer, and is regulated by the Pensions authority.

A personal pension scheme ( or a Retirement Annuity Contract – RAC) is arranged by the employee or self employed person in order to provide a pension on retirement or on death, payment to surviving dependants. They are governed by tax regulation and financial services legislation. The Pensions Authority does not have any regulatory input.

You can avail of both methods of providing for your retirement, however tax relief will only be available for one scheme.

Personal Retirement Savings Accounts more>> are being used by many employers who do not wish to organise an occupational pension scheme.

An employer must offer access to at least one standard PRSA to each employee who does not have access to an occupational scheme, within six months of commencing employment. A PRSA must similarly be offered for AVC purposes if the scheme does not have the ability to offer AVCs, more>>.

What happens when I change employment?

If you change employer or become self employed or otherwise leave the occupational pension scheme you may be able to avail of one of two options.

If you have 2 years service or more, you are entitled to have your benefits preserved. That way, when you reach the retirement age of the scheme, you can avail of the benefits which had been preserved.

Your other option is to have the benefits transferred to another pension scheme. This can often prove to be the better choice, as you will tend to monitor the new scheme more closely.

Where can I get independent advice on transferring my pension benefits?

You can avail of a free time limited consultation with one of our qualified experts. They will help you decide on a copurse of action that will maximise the return on your pension funds.

Just use the quote button above and we will contact you at a time that suits.

{KomentoDisable}

Executive pension plans are taken out by employers to provide for the retirement of executive and key employees. They are set up under trust. The Employer normally acts as Trustee.

Tax Benefits

Executive Pension plans provide excellent tax benefits to both the employer and employees.

For Employers- Tax relief for the company

An employer must make a ‘’meaningful contribution’’ to the arrangement. Contributions made by the company into an Executive Pension plan can usually be offset against Corporation tax as an allowable business expense (subject to Revenue limits). The company can choose to make regular contributions or lump sum payments to tie in with your company’s profitability.

For Employees- Tax relief for you

You can also benefit from tax relief on any personal contributions you make. Tax relief is normally available at your marginal rate of tax. This reduces the net cost of your pension contributions.

Retirement Benefits

On retirement you may have the following options:

• Retirement lump sum

• Annuity

• Approved Retirement Fund (ARF)/ Approved Minimum Retirement Fund (AMRF)

• Taxable cash 

We have a great range of Providers to choose from who have a huge investment choice when setting up an Executive pension.  {KomentoDisable}

Start your quote today using the quote button above.